Reference no: EM131585718

Most US banks are privately owned, profit-making organizations. Although they provide a service just as many other businesses, banks differ because of their importance in the macro economy. Policymakers have debated whether banks should be permitted to only do "banking business", or whether banks should be permitted to engage in other lines of business such as selling insurance or buying and selling stocks and bonds. In this week's assignment you will address that premise through the following questions;

1. Provide a brief (one paragraph) overview on  The Keynesian Perspective, The Neoclassical Perspective, Money and Banking

2. What are the risks for the macro economy if a bank fails, that do not exist for other businesses?

3. If banks could participate in other lines of business, what benefits would there be for consumers?

4. Overall, discuss whether or not banks should be allowed to enter other lines of business. Provide support for position from course and/or outside materials.